first quarter 2011 conference call - datalogic · iq2010 iq2011 revenues growth 1q11 / 1q10 mobile...
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© Copyright Datalogic 2007-2011
First Quarter 2011
Conference Call
10th May, 2011
© Copyright Datalogic 2007-2011 22
DISCLAIMER
This document has been prepared by Datalogic S.p.A. (the "Company") for use during meetings with investors and financial analysts and is
solely for information purposes. The information set out herein has not been verified by an independent audit company.
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© Copyright Datalogic 2007-2011 33
HIGHLIGHTS
1Q11 RESULTS
OUTLOOK
© Copyright Datalogic 2007-2011 4
World-class producer of bar code readers, data
collection mobile computers, RFID and vision
systems
Datalogic offers innovative solutions for a
comprehensive range of applications in the
manufacturing, retail, transportation & logistics
markets
2010 Revenues at €393M of which 68% in the ADC
Market and 23% in the Industrial Automation
Market
Founded in 1972 in Bologna, Italy
Listed on the STAR Segment of the Italian Stock
Exchange since 2001
Over 2,000 employees
Direct presence in 30 countries worldwide selling
to +100 countries
+1,000 partners worldwide
Datalogic at a Glance
4
© Copyright Datalogic 2007-2011 5
Direct presence in 30 countries worldwide
7 Manufacturing Plants 9 R&D Centers
A Wide Geographical Footprint
2010 REVENUES – TOTAL €393M - BREAKDOWN BY AREA
EUROPE 40%
ITALY 11%
NORTH AMERICA 29%
ROW 7%
APAC 13%
5
© Copyright Datalogic 2007-2011 66
HIGHLIGHTS
1Q11 RESULTS
OUTLOOK
© Copyright Datalogic 2007-2011 777
Highlights 1Q 2011
€000 1Q2010 1Q2011 Var %
Revenues 89,520 104,956 17.2%
Gross Operating Margin (GOM) 40,474 49,416 22.1%
Ord. Operating Profit
(EBITANR*)7,697 12,213 58.7%
Operating Profit (EBIT) 6,724 11,106 65.2%
EBT 6,213 8,188 31.8%
Net Income 4,135 5,659 36.9%
EBITDA 10,585 14,896 40.7%
*Ebitanr: earnings before interest, taxes, acquisition and non recurring
€ mln
Quarterly Growth
Revenues growth, +17% YoY and +3% QoQ, continues to beat the market
Strong EBITDA growth, +41% YOY, and improvement of profitability: EBITDA margin at 14.2%
R&D expenses stable at 6.5% on revenues
Jump of net profit to €5.7 mln from €4.1 mln in the quarter
73.1 76.0 76.0
86.9 89.5
101.3 100.4101.5 105.0
-0.5
4.3 7.1 8.810.6
15.312.9 10.9 14.9
-4.1 0.6 4.0 5.7 7.712.4
10 7.9 12.2
-0.7%
Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11
Revenues EBITDA EBITANR EBITDA MARGIN
14.2%
© Copyright Datalogic 2007-2011 8
000€Last Year
1Q 2010%
Actual
1Q 2011% Var %
Revenues 89,520 100.0% 104,956 100.0% 17.2%
COGS (49,046) -54.8% (55,540) -52.9%
Gross Operating Margin 40,474 45.2% 49,416 47.1% 22.1%
Other revenues 338 0.4% 423 0.4%
R&D (6,067) -6.8% (6,793) -6.5%
Distribution Costs (17,826) -19.9% (19,988) -19.0%
Administrative expenses (8,692) -9.7% (10,370) -9.9%
Other operating expenses (530) -0.6% (475) -0.5%
Total operating expenses and others (33,115) -37.0% (37,626) -35.8%
Ordinary Operating Profit (EBITANR) (*) 7,697 8.6% 12,213 11.6% 58.7%
Non recurring costs/rev 0 0.0% 0 0.0%
Amort. Intang. Assets from acquis. (973) -1.1% (1,107) -1.1%
Operating Profit (EBIT) 6,724 -7.5% 11,106 10.6% 65.2%
Financial (costs)/rev. (1,420) -1.6% (1.474) -1.4%
Results from equity investments 29 0.0% 116 0.1%
Foreing exchange (costs)/rev. 880 1.0% (1,560) -1.5%
EBT 6,213 6.9% 8,188 7.8% 31.8%
Taxes (2,078) -2.3% (2,529) -2.4%
Net Income 4,135 4.6% 5,659 5.4% 36.9%
Depreciation (1,946) -2.2% (1,855) -1.8%
Amortization (942) -1.1% (828) -0.8%
EBITDA 10,585 11.8% 14,896 14.2% 40.7%
Exchange rate 1.3829 1.3680
(*) Ordinary Operating Profit before non recurring costs/revenues and amortization of intangible assets from acquisition (EBITANR)
1Q 2011 Consolidated P&L
© Copyright Datalogic 2007-2011 9
(*) Datalogic Mobile includes Enterprise Business Solutions BU
Strong Revenues Growth
REVENUES BY DIVISION REVENUES BY AREA
(**) % figures calculated on total net of adjustement
€000 1Q10 1Q11 Var %
Italy 9,122 11,082 21.5%
Europe 37,979 42,866 12.9%
North America 25,034 29,429 17.6%
Asia Pacific 9,661 14,081 45.7%
ROW 7,724 7,498 -2.9%
Total revenues 89,520 104,956 17.2%
10.6%
40.8%
28.0%
13.4%
7.2%
Italy
Europe
North America
Asia Pacific
ROW
€000 1Q10 1Q11 Var %
Datalogic Mobile (*) 20,684 21,175 2.4%
Datalogic Automation 19,024 24,447 28.5%
Datalogic Scanning 42,080 50,914 21.0%
Business Development 7,930 8,576 8.1%
Datalogic S.p.A. 3,291 3,793 15.3%
Adjustments (3,489) (3,949) 13.2%
Total revenues 89,520 104,956 17.2%
20.2%
23.3%48.5%
8.2%
3.6%
DL Mobile
DL Automation
DL Scanning
Business Development
DL Spa
© Copyright Datalogic 2007-2011 10
(€mln)
Segment Reporting: Revenues and EBITDA
REVENUES EBITDA
(€mln)
20.6 19.0
42.0
7.93.3
89.5
21.2 24.4
50.9
8.63.8
104.9
Mobile Automation Scanning Business Development
DL SpA Total Group
IQ 2010 IQ 2011
2.6
1.3
5.0
1.1 1.1
10.6
2.3
3.6
8.0
0.8 0.7
14.9
Mobile Automation Scanning Business Development
DL SpA Total Group
IQ2010 IQ2011
Revenues Growth 1Q11 / 1Q10
Mobile 2.4%
Automation 28.5%
Scanning 21.0%
Business Development 8.1%
Datalogic S.p.A. 15.3%
Total Group 17.2%
* EBITDA on total revenues
EBITDA Margin * 1Q 2010 1Q 2011
Mobile 12.6% 10.8%
Automation 6.8% 14.8%
Scanning 11.9% 15.7%
Business Development 13.9% 9.3%
Total Group 11.8% 14.2%
© Copyright Datalogic 2007-2011 11
Segment Reporting: R&D and TWC
R&D COSTS TWC
(€mln) (€mln)
1.41.7
2.8
0.0 0.0
6.0
1.41.7
3.1
0.50.1
6.8
Mobile Automation Scanning Business Development
DL SpA Total Group
IQ 2010 IQ 2011
11.3
21.926.9
3.0 2.9
65.7
9.6
20.3
26.5
4.1 3.9
64.7
Mobile Automation Scanning Business Development
DL SpA Total Group
IQ2010 IQ2011
TWC/Annualised Revenues 1Q 2010 1Q 2011
Mobile 13.7% 11.3%
Automation 28.8% 20.8%
Scanning 16.0% 13.0%
Business Development 9.5% 11.9%
Total Group 18.4% 15.4%
R&D/Revenues 1Q 2010 1Q 2011
Mobile 6.8% 6.6%
Automation 8.9% 7.0%
Scanning 6.7% 6.1%
Business Development 0.1% 5.8%
Total Group 6.8% 6.5%
© Copyright Datalogic 2007-2011 12
(*) Ordinary Operating Profit before non recurring costs/revenues and amortization of intangible assets from acquisition (EBITANR)
Note:
The Exchange rate variance has been calculated on Sales/COGS/Operating expenses originally denominated in USD ($). The variance was the result of the
difference between March’10 Actual (1,383) and March’11Actual (1,3680) €/USD exchange rate.
Therefore, this variance does not include the exchange rate effect on competitive scenario.
For Informatics and Evolution Robotics Retail (Business Development) has been considered its overall impact on the EBITANR
(€000)Exch rate on sales + 400
Exch rate on DCOGS - 255
Exch rate on Op Exp - 173
Other revenues +85
Other variable costs +163
Direct Cogs -1,387
Vol. sales/Mix +6,691
Service sales +531
EBITANR * - 1Q 2011 Actual vs. Last Year
7,697
- 1,080
7,222
2,405
-28
-2,564-300
- 1,139
12,213
Act March 2010
Price Vol. Sales/Mix New Prod. Exch rate € vs $
Oper Exp Business Development
Other Act March 2011
© Copyright Datalogic 2007-2011 131313
Consolidated Balance Sheet
€000 At 31/12/2010 At 31/03/2011
Intangible fixed assets 40,998 37,555
Goodwill 106,088 100,607
Tangible fixed assets 50,042 48,864
Non Consolidated investments 3,286 3,541
Other fixed assets 23,088 21,769
Total Fixed Assets 223,502 212,336
Net trade account receivables 69,353 74,305
ST account payables (56,688) (56,742)
Inventory 45,308 47,209
Trade Working Capital 57,973 64,772
Other current receivables 16,827 16,392
Other ST payables and provision for risk & future charges (47,553) (48,435)
Net Working Capital 27,247 32,729
Other LT payables (17,144) (16,301)
Employees’ severance Indemnity (7,121) (6,961)
LT provision for risk & future charges (9,823) (11,399)
Net Invested Capital 216,661 210,404
Equity (140,164) (139,241)
Net Financial Position (76,497) (71,163)
Exchange rate 1.3362 1.4207
© Copyright Datalogic 2007-2011 14
(€000)
Acc. Receivable - 5,034
Inventory - 1,901
Acc. Payable +54
Net Income +5,659
Deprec&Amort +3,790
Provision bad debt +82
Net Debt Analysis: Dec. 2010 – March 2011
76,497 9,531 6,881 1,745 1,527 598 6,554
71,163
Net Debt Dec 10 Operating cash Flow Ch Trade NWC Capex Purch./sale own shares
tax payments Other Net Debt March 2011
Positive Cash flow Negative Cash Flow
Exchange rate effect +2,871
Personnel cost accrual - 382
Taxes +2,499
LT MIP +1,566
© Copyright Datalogic 2007-2011 1515
HIGHLIGHTS
1Q11 RESULTS
OUTLOOK
© Copyright Datalogic 2007-2011
GLOBAL TRENDS
Technology shifts: analogue to digital; wireless technology
Globalization of the world economy
Increased focus on gaining efficiencies and cost reduction in supply chains
Greater safety and security concerns
1616
Reference Market Growth Trends
VALUE TO THE CUSTOMER
Better information, faster
Improved real time decision making
Operate more efficiently reducing operating expenses
Increase safety, security and compliance
Measurable, sustainable ROI
+8% average market growth* - 2010 through 2012
*Company’s estimates based on available market trend data
© Copyright Datalogic 2007-2011 1717
Focus on two major pillars of growth: Automatic DataCapture (ADC) and Industrial Automation (IA) markets
Foster external growth through M&A activities, mainly in the Automation market that is very fragmented
Expand emerging market presence, through strategic alliances and foreign investments
Drive Datalogic offering from just products to solutions
Ensure innovation and product development through relentless R&D activities and investments
Datalogic Growth Strategy
© Copyright Datalogic 2007-2011 1818
Datalogic three year plan target
2012 organic revenues target in the range of 420-430 mln Euro, CAGR at 11%
2012 EBITDA target in the range of 60-65 mln Euro, CAGR >45%
R&D investments between 7%-8% of revenues per year
Strong cash generation and expected debt reduction
Investment in capex stable at around 2.5% of revenues per year
2012 ROE target around 20%
© Copyright Datalogic 2007-2011 1919
Datalogic S.p.A.
Via Candini, 2
40012 Lippo di Calderara di Reno
Bologna – Italy
Tel. +39 051 3147011 – Fax +39 051 3147205
E-mail [email protected]
www.datalogic.com
This presentation contains statements that are neither reported financial results nor other historical information. These statements are forward-looking
statements. These forward-looking statements rely on a number of assumptions and are subject to a number of risks and uncertainties, many of which are
outside the control of Datalogic S.p.A., that could cause actual results to differ materially from those expressed in or implied by such statements, such as
future market conditions, currency fluctuations, the behavior of other market participants and the actions of governmental and state regulators
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prohibited without express written consent from Datalogic S.p.A. Datalogic and the Datalogic logo are registered trademarks of Datalogic S.p.A. in many
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